How to raise capital for a startup? Perhaps the most common question in today’s day and age. Startup & Entrepreneurs always face one common problem; CASH and unfortunately, it always appears as if this cash always ends up in the hands of the wrong person. That notwithstanding, most of the greatest business icons we have in the world today started the business with close to nothing. How on earth did they do it?!
I am going to be writing based on my personal experience so I want you to read through with an open mind and add yours too if I didn’t mention a point you have knowledge of.
Build Relationships And Communicate:
Like I used to tell my friends, I can spend a fortune on building relationships with people, my major hobby is cultivating acquaintances on a daily basis. Life is all about influence, just a good relationship and an adequate communication effort can boost your business idea.
It helps you to spend less, or you can end up spending nothing. If you connect to people, and you let them know what you are up to and you are persuasive enough to convince them, you might just be on a new path of fortune because they might be able to help fund your business or connect you to someone who can help.(or connect you to someone who knows someone that knows someone who can help). LIFE IS A WIRED PLACE.
Get A Job!:
Sometimes, we need to be realistic, some people have business ideas and are not ready to sacrifice to make a success out of it. That’s what I call dreaming and refusing to wake up from slumber.
After conceiving a business idea, I suggest you get a job to get a life! No matter the amount the job will fetch you, either it’s big bucks or peanuts it doesn’t matter. What matters is you have a stable source of income and with many disciplines, you can save up to start that your business. Work Work Work!
Another reason why you need to get a job is to gather some experiences that will be pertinent in your next phase.
Join A Cooperative Society or Thrift:
Usually, this works for those that have jobs (more reason why it is important you get a job no matter what kind of job it is). All you do is to find any registered cooperative society close to you or your place of work and register as a member, they will tell you the categories of monthly contributions then you will pick the one convenient for you. You will be surprised how much you would have saved up in a year with dividends.
You can also apply for a loan in your cooperative society because it will attract low-interest rates. There are other fringe benefits that go along with that. The thrift is slightly different, it requires a cluster of people in a workplace to team up and start a financial contribution among themselves and rotate the collection monthly according to the number of cluster members. Take for instance there are 10 contributing members and they contribute $10 each month for ten months, each person will take $100 in turns till everybody gets $100.
Raise From Friends And Relatives:
This is also another way of raising quick cash. If you need $1000 for example, wisdom should let you know that just one person might not want to give that to you without you having to go through a lot of stress trying to convince him or her. In this situation, the worst-case scenario is you won’t get the money.
On the other way round, you could ask ten members of your family, friends, or relatives to raise you at $100 each. They won’t mind throwing that away, but of course you might not get another if you blow it up.
Join A Crowdfunding Site (most preferred by a startup these days):
This is another way to raise funds for your business ideas or social projects. Crowdfunding sites help showcase your idea or project To members of the platform who would donate money to you through the platform. With a very good idea with the prospect of catching people’s interest, you can raise even far above $5000. Some of the Crowdfunding websites include:
Get A Public Grant or Fund:
Usually, if you make a research you will find out that there are some government or public grants attached to projects in that line which you are thinking. That might just be all you need to get a breakthrough.
Get A Mentor:
A mentor would do you a lot of good, you need a mentor to coach you, connect you, and be generous to be your first partner.
Others which I don’t usually support are:
Get A Venture Capitalist
Get A Loan from A Micro-finance Bank